Thursday, February 02, 2006

"Addicted to Ferin Oil"

This part of the State of the Union (SOTU) was truly assinine. Oil is traded on global energy markets, all you need to know is that oil is black and money is green. If the United States were to buy oil exclusively from Russia or Norway or anywhere other than the Middle East it would have no impact on oil prices. Ultimately that which would have an impact on oil prices is reduced consumption. Drastically reduced. You can address that question either by focusing on increasing other energy supplies or reducing demand for oil consumption. However, the logical favorite for increasing supply, Nuclear Energy, is, well, radioactive. Discouraging consumption of oil through a Gas Tax, is even less likely. Although, this would be a fairly sensible tax.

7 comments:

Baked bread said...

It's good to see you're level headed enough to advocate a gas tax.

xtrachromosomeconservative said...

Unfortunately, a gas tax of consequence, say 50 cents-1 dollar per gallon, has a snowflakes chance in hell of getting through.

Mandingo said...

A Sheehan's chance in hell?

Anti-Everything said...

Xtra, I actually agree with you. When I heard that in the state of the union address I was thoroughly confused, as was anyone who has even a basic understanding of traded commodities in a world market.

You should check out this editorial from back in November. Although I disagree with Krauthammer when he refers to Hugo Chavez as “the mini-Mussolini of the Southern Hemisphere”, I think the main point of his argument is exactly right. This is one of the few areas that I think that the market would actually do a just job of regulating oil prices.

http://www.washingtonpost.com/wp-dyn/content/article/2005/11/10/AR2005111001502.html

xtrachromosomeconservative said...

"market would actually do a just job of regulating oil prices"

this is an interesting formulation. Typically, bodies that regulate are a central organization that are able to distribute benefits and impose burdens on the basis of statutory or otherwise derived authority. A market constitutes millions of individual transactions where a commodity's price fluctuates according to supply and demand. Thus a thoroughly decentralized phenomenon. But what i find interesting is your description of a "just" regulation. It goes to the question of what is "just" and to whom. For those that are receiving a greater share of benefits as a result of a regulation, the regulation is "just" as they are winners. And naturally the converse applies. Thus, in many ways, this is the argument for markets, free and unfettered.

Anti-Everything said...

Okay but you missed the first part of that sentence where I said "This is one of the FEW areas that I think that the market would actually do a just job of regulating oil prices."

And maybe my use of the term regulate was misused.

xtrachromosomeconservative said...

Yes, i suppose "few", is really my point of contention.